Purchasing And Supply Objective

Logistics of moving goods

Modes of Transportation:

  1. Water mode
  2. Pipeline
  3. Rail mode
  4. Land mode
  5. Air mode

Benefits of Transportation

  1. Visibility
  2. Inventory Flow
  3. Sustainability
  4. Preferred Shipper Status
  5. Customer Satisfaction

Difference Between Logistics and Transportation

Logistics deals with the integration of storage, transportation, cataloguing, handling and packaging of goods while transportation deals with the function of moving products or individuals from one location to the next.

Physical Distribution refers t the tasks involved in managing the physical flows of materials and final goods from points of origin to points of use to meet the needs of the customers and the institution.

Major Elements

Materials Handling

It involves moving products in and out of a stock. Efficiency, is increased though us of electronic data processing to control conveyor system, order picking and other traffic flaws

Refers to the stock of product a form has on hand and ready for sale to the customers. Inventory are kept to meet market demands promptly.

Inventory Planning and Control

Considered as a key to customer service and satisfaction. It includes receiving, recording, filling and assembling of products for dispatch.

Order Processing

Decides what mode or combination of modes of transportation should be used to transport products to warehouse and from there to customer or should the transportation cost be reduces and the desired levels of customer service still maintained.

Transportation

Process of passing the information and understand from one person to another. This including the information system which should link producers, intermediaries and customers.

Communications

The person in charge of the physical distribution should co-ordinate all activities into an effective system to provide the desired customer service in the most efficient manner.

Organisational Structure

Definitions

CONTROLLING PHYSICAL DISTRIBUTION

Supply Chain Umbrella

A large set of activities beside purchasing is part of supply chain management each of these seemingly diverse activities has one important features in common. This is part of a network that will define how efficiently and effectively goods and information flow across a supply chain.

Right of purchasing

  1. From right source
  2. For the right price
  3. At the right quantity
  4. At the right time
  5. Getting the right quality

Inbound logistics-the transport, storage and delivery of goods coming into a business.

Outbound logistics- the same for goods going out of a business. Inbound and outbound logistics combine within the field of supply-chain management.